GRANTS

Delaware Strategic Fund (DSF): Discretionary program offers low interest loans and grants to businesses that are creating jobs, relocating, expanding or redeveloping brownfield sites.  

Delaware New Jobs Infrastructure Fund: The State may provide discretionary grants to businesses for infrastructure improvements that result in new job creation and capital investment. 

Workforce Training Grant: Matching grants of up to $100,000 may be provided to businesses for job training

TAX CREDITS:

New Business Facility Corporate Income Credit:  Program provides an as-of-right tax credit to businesses that create at least 5 jobs and make a capital investment of at least $200,000 ($40,000 per employee). The credit is equal to $500 per job and an additional $500 for every $100,000 in capital investment. This non-refundable credit cannot be used to offset more than 50% of tax liability in a given year. Unused credits may be carried forward for up to 10 years.

Business Finder’s Fee Tax Credit: This program was established to attract new businesses to Delaware and to give existing Delaware companies an incentive to encourage suppliers, customers, and service providers to establish operations in the state.   To qualify for the refundable tax credit, both the existing business (called the Sponsor Firm) and the relocating business (called the New Business Firm) must jointly file an application and the New Business must create at least 3 full-time jobs.  The Sponsor Firm and New Business are both able to claim an annual credit equal to $500 for each new full-time job created by the New Business.  Credits may be claimed by both businesses for a period of 3 years.

Research and Development Tax Credit: Offers a non-refundable tax credit equal to either: (a) 10% of the excess of the taxpayer’s total qualified research and development over its base amount, or (b) 50% of Delaware’s apportioned share of the taxpayer’s federal research and development tax credits, with modifications. The R&D credit cannot exceed 50% of tax liability in any given year.  Unused credits may be carried forward.

FINANCING

Tax-Exempt Bond Financing: The Delaware Economic Development Office (DEDO) may assist new or expanding businesses through the issuance of tax exempt bonds which carry lower interest rates.   Projects that require the issuance of $750,000 or more in bonds would derive the most benefit under the program. 

 

Last updated: April 2016

 


 
BIGGINS LACY SHAPIRO & COMPANY
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
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